Regarding cryptocurrency, Africa is among the last, if not the last, continent to be mentioned in terms of adoption. Although it is worth noting that some African nations are worth the attention; for instance, Nigeria, which is among Africa’s largest economies, is in its primary phase of monetary tests.
The country launched a digital currency of its normal currency known as the eNaira by the Central Bank in Nigeria. And as it stands, the people in Nigeria need to utilize the currency, and its adoption needs to be more appealing.
In addition, the Nigerian Central Bank eliminated the use of their old bank and replaced them with new notes that cannot be easily counterfeited. The following events have stirred a chain of reactions in the banks, and according to reports, bank users can only access up to a maximum of forty-five dollars a day.
According to information from Bloomberg, several individuals seem to be skeptical about the move, and it is alleged that it is an action by the administration to push its citizens to utilize digital currency.
Moreover, the nation has been relentless in trying to push this agenda. For example, the administration has attempted to secure support from a technology firm based in the United States to assist the nation in governing and regulating the digital currency.
However, it is substantial to note that not all nations in the world are for the idea of Digital Currencies, and several countries are on their way to formulating guidelines against the use of the central bank digital currencies.
Last week, legislators in the United States introduced a bill that hinders the U.S. Federal reserve from producing its digital currency.
Eliminating Traditional Currency
Although many seem not to appreciate technology and the formation of the central bank digital currency, traders, investors, and digital currency advocates in the digital world have also called for eliminating old banknotes in exchange for digital currency. The demand also appears to increase as days pass by.
The United States is alleged to have delisted bills with the time that range from five hundred to ten thousand dollars, and as years pass by, we might also witness the removal of the hundred-dollar bill.
Several nations seem to agree that getting rid of these old banknotes is a way to counter terrorism and corruption, among other malicious activities.
Despite the creation of digital currency by central banks across the globe, many hold that their introduction may still need to be a solution compared to cryptocurrency and stablecoins such as Ethereum and Bitcoin because crypto is not a centralized asset. Still, the CBDC is, a fact, decentralized, and that can only mean that they can be monitored, tracked, and regulated by the central banks with possible terrifying consequences.
Since gold is not as portable and liquid as cash, assets like gold are smart investments secured and private and not provided by any administration. Thus this situation increases the chances for investors to capitalize on such assets.
The same can be argued for the initial coin, BTC, compared to CBDC; the only method to mint an ounce of gold or a new BTC is through relentless efforts that include energy and time. It is worth noting that no central bank or financial institution in the world can impact the distribution of these assets by word of mouth.